14.2 Open or Close a University Bank Account

Policy Statement

The Vice President, Chief Financial Officer, and Comptroller is the signer on all bank contracts and accounts, as authorized under the General Rules Concerning University Organization and Procedure. The Comptroller delegates Cash Management to maintain and manage the services associated with each bank account. The Comptroller or delegate must approve all requests to close a bank account.

The University of Illinois System also maintains bank accounts for Merchant Card Services. Merchant Card Services works under a State of Illinois contract, and all bank activity is acquired through the State of Illinois. The Comptroller is the signer for all bank accounts opened for the University of Illinois System at the bank the State of Illinois has contracted.

These bank accounts are subject to audit at any time by the Office of University Audits.

Reason for Policy

This policy establishes a formal process for opening and closing bank accounts to manage institutional risk, ensuring compliance and to protect the university from fraudulent activity. This policy provides clear instructions for individuals/departments to establish adequate control procedures to minimize financial loss.

Applicability of the Policy

This policy applies to all individuals and departments at the University of Illinois System who are looking to open or close a bank account.

Procedure

To open a bank account:

1. If a department needs a bank account, forward the request to Cash Management, who will review to determine if a new bank account is needed or activity can be directed to an existing account. If a new account is needed, the request will be made to the bank and be signed by the Comptroller.
2. Two authorized persons must sign all checks or authorizations for withdrawing funds.

To close a bank account:

1. Send the request to Cash Management for approval.
2. Cash Management will process and transfer any remaining funds to the system's primary bank account and notify the bank of the system's action.
3. University Accounting and Financial Reporting (UAFR) will credits the funds to the unit's CFOP.
4. Destroy all unused checks and deposit tickets in the presence of another person.
5. UAFR will notify the unit if there are any transactions that have not yet been recorded in Banner. UAFR will continue to monitor these transactions until they are resolved.

Bank Account Titles

For all domestic bank accounts, the account title should be Board of Trustees of the University of Illinois. A subtitle can be included.

For foreign bank accounts, it depends on the requirements of each country.